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Amazon Competitive Price Tracking

Amazon competitive pricing

Amazon is one of the top tech giants involved in the online retail business. Their net sales for 2020 amount to $386 billion and are growing every year. Amazon has a global consumer base and the FBA model has attracted the attention of several sellers. Amazon Marketplace has become overly saturated with sellers offering the same products due to a sudden influx of vendors. This makes it very difficult to generate revenues because one needs to outsmart the competition and grab customer attention. This means that you need to get your listings ranked among the top searches.

This is easier said than done. Amazon is committed to providing the best possible price to their customers and they have enacted a pricing rule that ensures that the consumers get the best competitive prices. The secret behind Amazon’s success lies in the use of advanced technology, sophisticated processes, competitive pricing, and customer-centricity.


    The dynamic pricing model at Amazon is designed to ensure consumers get the best prices. Amazon’s focus has been on customer convenience, fast delivery options, and a wide variety of products to choose from. Amazon’s competitive pricing adds to the value creation for customers. Merchants can also be benefited from selling on Amazon but they need to be mindful of the pricing.

    It is a common misconception among sellers that slashing prices is enough to attract customers, but it is not true. Amazon’s competitive pricing must be understood by merchants, as well as the fact that Amazon considers other factors. As a result, these factors play a key role in ranking listings on top and displaying them in the Buy Box.

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    Amazon Pricing Model Explained

    The Amazon Competitive Pricing model revolves around offering the most competitive prices to customers. This means that the prices are not fixed and they can change several times in a single day. Keeping the prices low ensures customer loyalty to the brand as well as customer retention. This increases the profitability of sellers and vendors on Amazon allowing them to build their consumer base.

    Besides Amazon’s competitive pricing, the Buy Box also contributes to Amazon’s success. The Buy Box ensures more visibility and increased sales revenues for sellers. It is also a tool Amazon uses to ensure competitive prices are offered to their customers. There is fierce competition among sellers to appear on the Buy Box. Those who do not make it to the Buy Box are still able to use their product and shipping prices to rank higher on Amazon’s search engine.

    Pricing Product Listings on Amazon

    Sellers can price product listings in multiple ways with the ultimate goal of maximizing sale revenues. Mostly, sellers price their private label product listings in such a way that wins them a spot in the Buy Box. In the case of niche products, the main idea is to get the product listings to rank higher than competitors to increase visibility.

    In addition to prices, Amazon also focuses on product ratings and customer reviews, product descriptions, keywords, fulfillment and delivery, and the availability of products for ranking products and featuring them on the Buy Box.

    For Amazon Competitive Pricing, the following should be kept in mind for product strategy and pricing listings.

    Establishing Product Prices on Amazon

    Price is one of the key determinants of your success on Amazon. In the fierce competition between sellers, even a minor slip-up in pricing can lead to huge losses in terms of sales revenue. That considered, the simplest method to determine prices is to first understand the sale and financial goals for your business, the costs and overheads, and the target audience. The product listing should be as per the Amazon Competitive Pricing model while also earning you a profit. You should have a clear idea of the highest and lowest price levels that could be offered on your pricing levels. An average of these price levels will help you gain a competitive advantage over the rivals and also earn you profits. Certain pricing strategies are as follows:

    Dynamic Pricing Strategy

    Today, customers are well-informed and make informed purchase decisions that involve price comparisons along with other factors. Many price matching tools allow customers to compare the prices of various items. This adds to the competitiveness and complexity of Amazon’s Competitive Pricing. This means that a dynamic pricing strategy is a must to ensure that sales are made. Amazon’s dynamic repricing strategy involves constant updating of product prices depending on the prices of competitors.

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    Manual Repricing

    Under this model, you have to reprice the products manually using Amazon Seller Central. However, this is very labor-intensive since one needs to constantly check for changing prices and update prices accordingly to maintain the top listing in Amazon search.

    Rule-Based Automatic Repricing

    This model eliminates the need to manually monitor the price change. It streamlines the repricing of product listings and is a better way to ensure that product listings are ranked among the top searches. This includes the use of rule-based repricing tools that can be pre-configured. Automate Pricing is an efficient tool for Amazon’s Competitive Pricing.

    Repricing Algorithms

    The use of self-learning algorithms is one of the most sophisticated repricing tools widely used by sellers in the Amazon marketplace. The algorithm not only reprices products but also takes several other factors into account and suggests a “winning price”.

    Dynamic Repricing & XpertVA

    XpertVA’s team of professional Amazon virtual assistants considers that dynamic pricing is one of the best strategies for Amazon Competitive Pricing. Deriving from our experience, we can analyze that the competition is getting fierce each day and you would need Amazon Competitive Pricing to boost sales and also ensure profit margins. XpertVA’s dynamic pricing solution and our team of professionals are there to help you set the right price for your product and help you rank higher in Amazon listings.

    Other Services You Might Be Interested In:
    Amazon Marketplace Management Service
    Amazon Product Taxonomy Mapping Service

    Talk With Our Expert to Get Started Today!

    Contact XpertVA to book a consultation with our skilled professionals who will assist you in setting competitive price for your product listings and ensure greater reach and higher ranking in Amazon searches. Feel free to contact us and grow your Amazon business.

    Frequently Asked Questions

    What pricing strategy does Amazon use?

    Amazon uses Dynamic Pricing which means the product listings are repriced with changes in prices of competitors to ensure the lowest price to customers.

    What does Amazon’s pricing policy mean?

    Amazon’s product policy states that any single product or collection of products should be priced at a level equal to or lower than the same listing on other platforms.

    What are the standard price and business price?

    Standard price means the price for all customers on Amazon while the business price is only for business customers.

    What do you mean by Amazon international pricing?

    This involves developing international listings on Amazon that include costs such as shipping costs, return shipping costs, customer support costs, etc.

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